The proposed 9-mill tax increase, if approved, would cost the owner of a property carrying the district's median tax assessment of $3,115 another $28 a year, a school tax bill of $685.

The median assessment represents the midpoint of all assessments in the district, so half the property owners in the district would pay more, and half would pay less.

Foster said most of the higher costs are items beyond the district's control, such as health insurance, contractual raises, and increases in the budget for the Carbon County Area Vocational Technical School.

However, the school board rejected the Vo-Tech budget Tuesday, which means it will have to be revised if any of the four other districts that are members of the vo-tech also reject it.

Each district's cost for operating the vo-tech is based on how many of their students attend.

Palmerton's budget won't be voted upon until June. The school board plans to go over the details in May.

If the preliminary budget is approved, it will be the district's fifth tax increase in six years.

Foster said state is largely to blame because it has been paying a smaller and smaller percentage of the costs of education each year.

"It puts an unfair burden on local school districts, school boards and taxpayers," he said.

Palmerton's budget has gone from $14.1 million in the 1995-96 school year to the current $15.6 million, and would rise to nearly $16.4 million under the proposed budget for the coming school year.

The new budget would bring the six-year increase in both the budget and the tax rate to about 16 percent, less than the increases in some neighboring districts, such as Jim Thorpe.

Board members listened to Foster present the budget and asked no questions, but they had plenty to say about the vo-tech's proposed budget.

The vo-tech has proposed a $4.5 million budget, up 5.1 percent from last year. But because of the way the five school districts split the cost, Palmerton's would pay more than $1.1 million, a nearly 19 percent increase.

Although Palmerton's board has been one of the vo-tech's strongest supporters, board President Robert Jakoubek said the budget presented by the vo-tech was hard to understand and didn't make sense in places. Other members agreed.

Jakoubek and School Directors Raymond Tuthill Jr., James Pollard, Dolores George and Steve Geiger defeated the plan. Christopher Anthony, who works at the vo-tech, abstained. Jeffrey Way was absent.

In other tax-related business, the school board dissolved the district-run tax collection office that for 36 years has collected earned income, occupational privilege and delinquent per capita taxes for the district and four municipalities.

The move means two district employees will lose their jobs.

Palmerton and Bowmanstown boroughs and Towamensing and Lower Towamensing townships, which with the district shared the cost of the office, have announced plans to pull out of the deal.

All four plan to hire Berkheimer Associates, a private tax collection company, and the district now plans to do the same.

Berkheimer will do the same work, charging 2.25 percent of what it collects, vs. the 5.5 percent charged by the district-run office.